On 3 May 2017, the Spanish Supreme Court (the “Supreme Court”) issued a judgment in which it declared that employer’s contributions to (i) medical insurance policies; (ii) life insurance policies; and (iii) pension plans, should be treated in the same way as salary (as benefits in kind). Contributions must therefore be included in the annual salary considered when calculating the severance payment for dismissal.
Key contacts
Steve Bell
Managing Partner - Employment, Industrial Relations and Safety (Australia, Asia), Melbourne
Emma Rohsler
Regional Head of Practice (EMEA) - Employment Pensions and Incentives, Paris
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